SENATE BILL 97039
BY SENATORS Johnson, Ament, Chlouber, Hernandez, and Wattenberg;
also REPRESENTATIVES Grampsas, Alexander, Johnson,
Lamborn, Musgrave, Nichol, Reeser, Schwarz, Udall, and Young.
CONCERNING EXPANSION OF REQUIREMENTS FOR CLASSIFICATION
AS AGRICULTURAL PROPERTY FOR PROPERTY TAX PURPOSES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 391102
(1.1) and (1.6), Colorado Revised Statutes, 1994 Repl. Vol., as
amended, are amended to read:
391102. Definitions.
As used in articles 1 to 13 of this title, unless the context
otherwise requires:
(1.1) "Agricultural and livestock
products" means plant or animal products in a raw or unprocessed
state which
THAT are derived from the science and art of agriculture, REGARDLESS
OF THE USE OF THE PRODUCT AFTER ITS SALE AND REGARDLESS OF THE
ENTITY THAT PURCHASES THE PRODUCT. "Agriculture", for
the purposes of this subsection (1.1), means farming, ranching,
animal husbandry, and horticulture.
(1.6) (a) "Agricultural land",
WHETHER USED BY THE OWNER OF THE LAND OR A LESSEE, means one of
the following:
(I) A parcel of land, whether located
in an incorporated or unincorporated area and regardless of the
uses for which such land is zoned, which
THAT was used the previous two years and presently is used as
a farm or ranch, as defined in subsections (3.5) and (13.5) of
this section and the gross income
resulting from such use equals or exceeds onethird of the
total gross income resulting from all uses of the property during
any given property tax year, or which
THAT is in the process of being restored through conservation
practices. Such land must have been classified or eligible for
classification as "agricultural land", consistent with
this subsection (1.6), during the ten years preceding the year
of assessment. Such land must continue to have actual agricultural
use. "Agricultural land" under this subparagraph (I)
includes land underlying any residential improvement located on
such agricultural land and also includes the land underlying other
improvements if such improvements are an integral part of the
farm or ranch and if such other improvements and the land area
dedicated to such other improvements are typically used as an
ancillary part of the operation. The use of a portion of such
land for hunting, fishing, or other wildlife purposes, for monetary
profit or otherwise, shall not affect the classification of agricultural
land. FOR PURPOSES OF THIS SUBPARAGRAPH (I), A PARCEL OF LAND
SHALL BE "IN THE PROCESS OF BEING RESTORED THROUGH CONSERVATION
PRACTICES" IF: THE LAND HAS BEEN PLACED IN A CONSERVATION
RESERVE PROGRAM ESTABLISHED BY THE NATURAL RESOURCE CONSERVATION
SERVICE PURSUANT TO 7 U.S.C. SECS. 01 TO 5506; OR A CONSERVATION
PLAN APPROVED BY THE APPROPRIATE CONSERVATION DISTRICT HAS BEEN
IMPLEMENTED FOR THE LAND FOR UP TO A PERIOD OF TEN CROP YEARS
AS IF THE LAND HAS BEEN PLACED IN SUCH A CONSERVATION RESERVE
PROGRAM.
(II) A parcel of land which
THAT consists of at least forty acres, which
THAT is forest land, which
THAT is used to produce tangible wood products that originate
from the productivity of such land for the primary purpose of
obtaining a monetary profit, which
THAT is subject to a forest management plan, and which
THAT is not a farm or ranch, as defined in subsections (3.5) and
(13.5) of this section. "Agricultural land" under this
subparagraph (II) includes land underlying any residential improvement
located on such agricultural land.
(III) A parcel of land that consists of
at least eighty acres, or of less than eighty acres if such parcel
does not contain any residential improvements, and that is subject
to a perpetual conservation easement, if such land was classified
by the assessor as agricultural land under subparagraph (I) or
(II) of this paragraph (a) at the time such easement was granted,
if the grant of the easement was to a qualified organization,
if the easement was granted exclusively for conservation purposes,
and if all current and contemplated future uses of the land are
described in the conservation easement. "Agricultural land"
under this subparagraph (III) does not include any portion of
such land that is actually used for nonagricultural commercial
or residential purposes.
(IV) A PARCEL OF LAND, WHETHER LOCATED
IN AN INCORPORATED OR UNINCORPORATED AREA AND REGARDLESS OF THE
USES FOR WHICH SUCH LAND IS ZONED, USED AS A FARM OR RANCH, AS
DEFINED IN SUBSECTIONS (3.5) AND (13.5) OF THIS SECTION, IF THE
OWNER OF THE LAND HAS A DECREED RIGHT TO APPROPRIATED WATER GRANTED
IN ACCORDANCE WITH ARTICLE 92 OF TITLE 37, C.R.S., OR A FINAL
PERMIT TO APPROPRIATED GROUND WATER GRANTED IN ACCORDANCE WITH
ARTICLE 90 OF TITLE 37, C.R.S., FOR PURPOSES OTHER THAN RESIDENTIAL
PURPOSES, AND WATER APPROPRIATED UNDER SUCH RIGHT OR PERMIT SHALL
BE AND IS USED FOR THE PRODUCTION OF AGRICULTURAL OR LIVESTOCK
PRODUCTS ON SUCH LAND;
(V) A PARCEL OF LAND, WHETHER LOCATED
IN AN INCORPORATED OR UNINCORPORATED AREA AND REGARDLESS OF THE
USES FOR WHICH SUCH LAND IS ZONED, THAT HAS BEEN RECLASSIFIED
FROM AGRICULTURAL LAND TO A CLASSIFICATION OTHER THAN AGRICULTURAL
LAND AND THAT MET THE DEFINITION OF AGRICULTURAL LAND AS SET FORTH
IN SUBPARAGRAPHS (I) TO (IV) OF THIS PARAGRAPH (a) DURING THE
THREE YEARS BEFORE THE YEAR OF ASSESSMENT. FOR PURPOSES OF THIS
SUBPARAGRAPH (V), THE PARCEL OF LAND NEED NOT HAVE BEEN CLASSIFIED
OR ELIGIBLE FOR CLASSIFICATION AS AGRICULTURAL LAND DURING THE
TEN YEARS PRECEDING THE YEAR OF ASSESSMENT AS REQUIRED BY SUBPARAGRAPH
(I) OF THIS PARAGRAPH (a).
(b) All other agricultural property which
THAT does not meet the definition set forth in paragraph (a) of
this subsection (1.6) shall be classified as all other property
and shall be valued using appropriate consideration of the three
approaches to appraisal based on its actual use on the assessment
date.
(c) AN ASSESSOR MUST DETERMINE, BASED
ON SUFFICIENT EVIDENCE, THAT A PARCEL OF LAND DOES NOT QUALIFY
AS AGRICULTURAL LAND AS DEFINED IN SUBPARAGRAPH (IV) OF PARAGRAPH
(a) OF THIS SUBSECTION (1.6) BEFORE LAND MAY BE CHANGED FROM AGRICULTURAL
LAND TO ANY OTHER CLASSIFICATION.
SECTION 2. 3910114 (1) (a) (I) (A), Colorado Revised Statutes, 1994 Repl. Vol., as amended, is amended to read:
3910114. Abatement, cancellation
of taxes. (1) (a) (I) (A) Except
as otherwise provided in subsubparagraphs (D) and (E) of
this subparagraph (I), if taxes have been levied erroneously or
illegally, whether due to erroneous valuation for assessment,
irregularity in levying, clerical error, or overvaluation, the
treasurer shall report the amount thereof to the board of county
commissioners, which shall proceed to abate such taxes in the
manner provided by law. The assessor shall make such report if
the assessor discovers that taxes have been levied erroneously
or illegally. If such taxes have been collected by the treasurer,
the board of county commissioners shall authorize refund of the
same in the manner provided by law. Except as provided in subsubparagraphs
(E) and (F) of this subparagraph (I), in no case shall an abatement
or refund of taxes be made unless a petition for abatement or
refund is filed within two years after January 1 of the year following
the year in which the taxes were levied. For purposes of this
subsubparagraph (A), "clerical error" shall include,
but shall not be limited to, any clerical error made by a taxpayer
in completing personal property schedules pursuant to the provisions
of article 5 of this title. NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, FOR PURPOSES OF THIS SUBSUBPARAGRAPH (A), "ERRONEOUS
VALUATION" SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO: ANY
RECLASSIFICATION OF PROPERTY FROM AGRICULTURAL LAND TO ANY OTHER
CLASSIFICATION OF PROPERTY FOR THE PROPERTY TAX YEAR COMMENCING
JANUARY 1, 1996, IF THE PROPERTY IN QUESTION QUALIFIES FOR CLASSIFICATION
AS AGRICULTURAL LAND AS DETERMINED PURSUANT TO SECTION 391102
(1.6), AS AMENDED BY SENATE BILL 97039, ENACTED AT THE FIRST
REGULAR SESSION OF THE SIXTYFIRST GENERAL ASSEMBLY; AND
ANY DENIAL OF EXEMPTION FROM TAXATION FOR PROPERTY CLAIMED AS
AGRICULTURAL AND LIVESTOCK PRODUCTS FOR THE PROPERTY TAX YEAR
COMMENCING JANUARY 1, 1996, IF THE PROPERTY IN QUESTION QUALIFIES
AS AGRICULTURAL AND LIVESTOCK PRODUCTS AS DETERMINED PURSUANT
TO SECTION 391102 (1.1), AS AMENDED BY SENATE BILL
97039, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTYFIRST
GENERAL ASSEMBLY.
SECTION 3. Effective
date applicability. This act shall take effect
upon passage and section 1 of this act shall apply to property
tax years commencing on or after January 1, 1997.
SECTION 4. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO